In a public letter, members of the sharing economy came together to ask the European Commission to urge Member States to support objectives regarding the collaborative economy as part of the Digital Single Markets Strategy. The diverse group demanded that policy makers;
“…continue to seek to ensure that local and national laws do not unnecessarily limit the development of the collaborative economy to the detriment of Europeans. Support for our sector is also crucial in facilitating investment and widespread adoption. We therefore, call on the Council to acknowledge in its Conclusions, the positive contribution of the collaborative economy in terms of sustainable economic growth for Europe.”
The entire concept of the sharing or collaborative economy is challenging for most people to comprehend. The combination of the internet, deep data and innovative new services are disrupting a panoply of businesses in many different sectors. Perhaps best exemplified by names such as Uber and AirBnB, these two well-known names are just the tip of the iceberg. Financial services represent a very important disruptive force as Fintech challenges traditional banking firms.
Recently the European Parliament attempted to grasp the profound economic changes that are just around the corner. Last month, Sharing Economy UK published a document that explained, “the sharing economy leads to win-win efficiency gains not included in the definition of Gross Domestic Product”. So how do policy-makers adapt and evolve? Hopefully by allowing the collaborative sector to grow without excessive impediments erected by entrenched incumbents. In the end, policy-makers must recognize the overall benefit to society and not take a reactionary approach and thus stifle innovation.
The letter, embedded below, includes some well known Fintech names: Mangopay and Landbay – and more. Let’s see how the upcoming European Competitiveness Council goes.
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